Yep it sounds like you were hacked; I agree with JD on clearing out your HDD and reinstalling the OS - if someone got in deep enough to have remote access it'll be an uphill battle to clean your PC. (e.g. verifying ALL the services and startup programs are still legit will take longer than reinstalling) Also, note that (unless configured to do so) a router's firewall will only block stuff INCOMING and not outgoing, so if you put a router in there viruses can still communicate and do nasty stuff like participate in DDOS botnets.

I'm not sure why Eastlink + no hardware firewall is particularly bad, although any computer directly exposed to the Internet is iffy because one wrong move and you open a port (e.g. you enable universal plug and play, or you enable "Network Discovery" + printer sharing) and script kiddies can get their little programs in. A computer with open service ports (e.g. the first 1024) is just about the easiest target for Internet hackers. Any defense like a router's firewall can add an extra layer they must break through, and then you're no longer the easiest target. (e.g. they'll generally get your neighbour with who "keeps the door unlocked" before they care about you )

ANY internet service provider is bad if you don't have a router.

Telus is smart in the sense the modem they give you has a built in router so you don't necessarily need one of your own.

Shaw.. Eastlink do not do this and you need to make sure you invest in a router or be screwed.